Category: Regional round-up

Regional Round-Up

Posted on by Caitlin Dearden
Welcome to this month’s regional round-up – a glimpse of what’s going on in the paddocks right across Australia…
National overview – Chris Howie
Currently all the states, including South Australia and Western Australia, are quite wet, and there’s an expectation that more rain through August will start to create some water-logging issues with crop and pastures. Continued wet and cold conditions have seen livestock weight-gains slow down, with feed growth retarded by short days.Nearly all areas now have grazing grass, although it’s still quite short. New South Wales grazing crops are very good, and have provided backgrounders the opportunity to carry cattle well into August and September in order to maximise weight for age.Feeder steers and heifers continue to trade between $5.40-$6 per kg, depending on the breed. Most feedlots are very keen to secure numbers, which has seen some flexibility appear around minimum numbers and delivery points. Once numbers begin to appear, the supply specifications historically begin to tighten. Heavy cows 700kg+ have made up to $3.99 per kg liveweight, which is an exceptional return for older cows. Cows and calf units are eagerly sought to restock and provide a multiple option purchase. Bull sales continue to exceed all expectations following last year’s fantastic sale series, and the highlight to date is the Texas Angus bull Texas Iceman R725 making $225,000.Very good sucker lambs are starting to appear at Dubbo, Forbes and Wagga. Best lambs are very fresh – estimated at 24-25kg dressed – and are making $9.50-$10/kg with a $10-$12 skin. Mutton continues to trade across all areas at very good levels of $7 and better. Merino skins have been attracting good competition as well, returning $18-$23. July and early August are always periods of short supply, and considering locking some prices in for spring delivery at this time of the year is very sound business.Finally, many areas are now seeing considerable water in catchments, low areas, water courses and swamps. With any substantial rain there will be a high risk of flooding in many areas over the next six weeks.

 

Queensland – Angus Creedon
Currently we’re in the thick of winter, with much of northern New South Wales reporting wet and cold conditions. Queensland has responded well to the recent rainfall, with a lot of southern and central Queensland looking nice and green.The cold and wet weather in New South Wales means weight gains have eased, and many producers are now hanging out for the arrival of spring. Central and southern Queensland has a good moisture profile leading into spring, with the hopes of early rain in September and October. Northern and western Queensland is patchy, with the majority of areas being dry.Livestock prices have continued to increase over the past month off the back of tight supply, and many people in New South Wales are looking to stock up before spring hits. The majority of the weaner sales have now finished, and we’re seeing the tail end of this year’s weaner drop hit the market. These weaners, however, are still achieving great prices.

 

NSW – Toby Hammond
Most parts of New South Wales have experienced a number of cold fronts, which have brought large amounts of rain. Reports have shown that a lot of central and southern New South Wales has experienced above-average rainfall for July, and forecasts are predicting a similar trend will continue into August and start of Spring.These conditions have delayed livestock’s weight-gain performance, due to the stock focusing energy on keeping warm rather than grazing crop or pasture and putting on weight. There are lots of reports of foot sores in sheep, which is quite normal for this time of year, however it’s been further exacerbated due to the increase in the wet ground. Whilst being a challenging period for management practices, there’s a lot of optimism that – once sunny weather is upon us – both livestock and feed will bounce well away.I mentioned in last month’s regional round-up just how mild winter was, and the performance in both grass growth and livestock performance has remained fairly consistent. However, similar to last year, a vast region of the state is in a great position heading into spring, which will mean a surplus of feed and high demand to put mouths on it.Currently the prices for lamb and mutton are very strong. Some saleyard buyers have been reporting that trade lambs are fetching as much as $10.00/kg (cwt) and over-the-hook prices for mutton are creeping above the $7.00/kg (cwt) territory. With the skin prices bouncing back, there are some very positive results being reported when viewed as a $$/hd price.Cattle still remain strong across the board. Processors have been reporting well into the $8.00/kg (cwt) for killable steers and heifers and feeder prices have shot up into the mid $5/kg (lwt). Again looking at it as a $$/hd value, there are some astonishing figures being reported. This is a completely different scenario compared to this time last year, when COVID-19 cases started occurring in abattoirs throughout Victoria, and the lamb and mutton market took a dive to $6.00/kg (cwt) for lamb. Back then, you were lucky to find $5.00/kg (cwt) for mutton, not to mention the supply build-up it caused. With it being so wet and hard to find well-finished stock, the shortage has occurred and we’ve seen the market bounce up again.Overall this month, I’ve definitely noticed a shift in producers looking for PTIC cows or heifers, or something that already has a calf at foot. I think people are trending this way as a means of managing risk and creating options if we do see the market soften.

 

Victoria – Michael Phelan
More rain throughout much of Victoria over the last month has seen some areas become quite wet, especially those that received good early rains throughout March and April.  In the west, after a very slow start, significant falls have helped the season catch up somewhat, and it’s amazing that – with a bit of help from fertiliser applications – many broadacre crops are now not so far behind what we’d see during an average season.  Pastures that haven’t had a chance to rest in the drier regions are still struggling a little however.  With the rain has come a fair dose of wind, but as the old saying goes, “Wind brings weather”.Those that have received early rain and were able to establish a feed wedge going into the winter months are in a great position – and the feed just keeps coming.  There have, however, been reports in the wetter regions of animal nutrition issues associated with these types of conditions.  For example, cases of listeria in sheep have been reported, which is caused by the feeding of mouldy hay or silage which has essentially started to rot.  Very wet conditions can cause issues with management as it can delay the mustering of stock if conditions aren’t suitable and there are no breaks in the weather, making it difficult to give animals the attention they need.  This is where growers who have bitten the bullet and invested in such things as undercover yards, laneways and pasture management can get ahead.In regions where it was a very dry start to the year, pastures are still struggling to get away, with stock quickly nipping off whatever is coming through – even if growers have the ability to graze on rotation.  This is causing ewes and young lambs to come back a bit in their condition – however, with the moisture profile filling up, a good spring flush should help stock catch up a little bit in these areas. It’s certainly not uncommon to have some horrible conditions in the middle of winter but it is a good reminder that things can get wet – and they can get whole lot wetter than what they are now in Victoria. A quiet period during the middle of winter has sheep prices remaining steady across the board, with cattle seemingly finding another gear of late – especially in female stock of PTIC heifers or cows with calves at foot. In general, everything remains very strong at present.  As new-season sucker lambs start making their way onto the market in the next 3-4 weeks, it’ll be interesting to see what level of pricing we can expect through this period, with re-stockers and feed lotters keen to know what they’ll need to pay to secure store lambs.Finally, we’re doing a lot of work to set people up with finance for the busy period in the spring months, so they’re organised and not caught on the hop when opportunities start presenting themselves in the coming months.

 

Regional Round-Up

Posted on by Caitlin Dearden
Welcome to the regional round-up – all the latest livestock news from the paddocks, direct from our managers across Australia…
National overview – Chris Howie
Now we’re past the EOFY, don’t underestimate the quick run of numbers that will appear in July, having been held back to mitigate taxation with the prices of the last 18 months. Wool, lamb, mutton, grain and cattle are often held until July to soften the tax bill and create a bubble of supply that can put a brief dip in the market. Although there won’t be much sleep lost at the current prices, it’s funny how much effort we put into minimising tax compared to improving our production and marketing outcomes.It’s also the time of year that the lamb jobs start to kick. Up until last week prices were holding and, on some grids, dropped back under $8.Forwards have appeared with $8.70 for XB lambs into August. Auction lamb sales are starting to see quality trade lambs moving past the $9 realm, and heavy export lambs are well into the $8s. However, any secondary drafts are not seeing this competition and remain in the high $7s.In terms of cattle, trade cattle shortage and demand for feeders is really driving the market. Sales are continuing to strengthen, with many feedlots now operating openly across mixed breeds whilst once black was the only colour. Continuity of supply for the feedlot operations has taken priority over cosmetics and price. Hide prices have lifted from a very dull period of pricing, and there are whispers that foetal blood pricing is starting to reappear from some processors, on hooks cows that may have had an opportunity to the bull. Overall, with the potential of a very good trading period appearing in the spring, getting your trading facility set up now is a great idea. It’s vital to not miss the opportunities to buy and use your crop or future hay stubbles because you don’t have the funding in place.

 

Queensland – Angus Creedon
The news from Queensland is that decent rainfall in June has resulted in some excellent winter crops such as oats and barley. In saying that, 65% of QLD is still drought-declared and the recent rain in areas will only provide some short-term relief. These conditions are, however, allowing producers to purchase cattle onto crop, and prevent a sell-down for those still in drought-declared areas of QLD. This isn’t a massive change from previous periods, though we’re expecting spring in northern NSW to be outstanding, given the moisture levels. Livestock prices in Queensland have continued to stay strong and in some cases have increased. We’ve seen plenty of weaners hitting the market, along with PTIC cows, and 100-day grain-fed prices have lifted 10-15c, which has resulted in a lift in the feeder steer market. We can attribute this lift to the recent rainfall and low supply – and with supply being short, the prices are not going anywhere!

 

NSW – Toby Hammond
Weather conditions for most parts of New South Wales have been wet and cold as we progress into the winter depths of July. A lot of areas in higher elevations have already experienced snow, which has come unusually early this year, and despite the last month being bitterly cold, the moisture that’s come with it has been welcomed. Having plenty of moisture around at this time of year is a fantastic indicator for a positive spring, though the cold temperatures present challenges for producers who need to protect their livestock from the harsh coldness. Many farmers across the state will be heading into lambing or calving if they haven’t already finished or are half way through – highlighting the importance of nutrition and making sure animals are in appropriate conditions and able to seek shelter during such events. Given the abundance of feed around the areas, having livestock in a forward condition has not been too difficult to achieve.It’s worth noting that grazing crops – which had a shaky start through late March and April – are now firing away where some farmers have just started to graze their crops, or may be completing their first graze. Having this high-quality feed in the bank creates a lot of opportunity for trading livestock, as weight gains are heightened due to nutritional value in the crop. Across all categories, cattle prices are still strengthening.There’s always a winter supply gap which forces pressure on the kill and feedlotter prices, as demand in this sector strengthens. Demand’s still strong in the re-stocker sector as well, and showing no signs of coming back. Steers, for example, are costing anywhere from $1600-$1900/hd depending on weight, breed and quality, and are worth in the mid-to-high $2000’s/hd at the other end –  something that’s been on the increase for the last 12 months. Lamb prices remain strong though have the potential to soften the closer we get to spring, as the supply of new season lambs hit the market. The drop in supply for this time of year is pretty usual, year-on-year, which forces prices up as demand increases.

This year and last have been further exacerbated by the lack of numbers across the national herd, and flock which will take some years to recover. As the appetite grows – particularly in the cattle market for producers to trade and pay exorbitant prices for store animals – there’ll always be an expectation on the processors and feedlots to offer strong and competitive pricing, in order to maintain their supply and encourage farmers to sell. Otherwise, in seasons like we’re experiencing, farmers will be happy to sit back and put more weight on their stock.

 

Victoria – Michael Phelan
All areas of Victoria have now received some good rains, although it’s been very late in the west and has been followed by some very cold conditions, causing growth of crops and pastures to be very slow. Rain-wise most areas are now set up for the winter,  with many in central and eastern Victoria having a lot of cleaning up to do in the next couple of months after receiving some wild weather.  In spring we’ll see if we get the all-important rains in September and October that really drive things in the back end of the year. We’re heading into a quieter time of year now, with lambing in full swing and most having some sort of feed on the ground.This will be the case or a month or two, before fresh sucker lambs start coming onto the market and shearing season comes around again in August, September and October. Whilst worry is still there around stocking rates and slow growth in pastures, sucker lambs may come off their mothers a little earlier in order to keep breeding stock in better condition – however, generally things are manageable.Options are still there if some minor de-stocking needs to take place as lamb prices remain strong and the fat market is also good. Price-wise, things are pretty steady from week to week on the lamb side of things, with small fluctuations depending on the location of the market. The stratospheric prices of $9-$10 Kg/CWT have not really come to fruition like some expected, but pricing has been steady and at levels that producers should be able to make some good money at.

Cattle keep on keeping on and pricing just seems to keep trending upwards. If store buyers are game, they are definitely leaning towards female purchases, which at least give options down the track as opposed to simply trying to rely on making money from weight gain alone. With COVID lingering nationwide and livestock events approaching, we could be looking at another year without major events such as Sheepvention, which is already split into two events in order to cater to COVID – time will tell.

 

Regional Round-Up

Posted on by Caitlin Dearden

Welcome to the third instalment of our monthly regional round-up – StockCo’s state-by-state overview of the latest happenings from the livestock industry across Australia.

National overview – Chris Howie
The impact of African swine fever is still very significant and the shortage is creating a product-hole that in turn creates demand. It’s important to remember that, in Australia, we cannot eat all we produce, so like New Zealand we’re at the mercy of the season and – whether we’re talking beef or lamb – world demand for red meat protein is continuing to grow. At present, New South Wales and Queensland have grass, and therefore supply is based on when an animal is ready, rather than a forced sale. However, the South Australia and Victorian season – other than the far south – is dry and powdery, meaning livestock is coming onto the market because of the season as well as the approaching tractor-driving season. This is the normal cycle most years, hence the prices don’t move a lot. 

Cattle are still holding their own and feeder demand is still very strong – especially for the performance end of the blacks and cattle under assurance programs. Grass contracts are also available till August and September at good rates. I’m a great believer in taking a piece of these grass contracts if you’re going to run cattle on good pasture or crop, with them ideally signed up by mid-to-late July. If you have cattle to sell, irrespective of breed, do your homework on what supply box they fit into and make those buyers aware of what you have. Mutton continues to trade strongly in all states, and the recent cyclone that went walkabout through the south of Western Australia caused considerable damage to farm infrastructure but did deliver much-needed rain that is well-aligned to the winter cropping program. In South Australia and Victoria above the Penola to Horsham line, the season is really starting to bite. Early summer rains destroyed the dry feed and now paddocks are bare and dusty. This in turn has seen a supply of lambs come on which have processor requirements covered into May.

Finally, Beef 21 is here and the excitement is palpable. I’ll be attending at the StockCo stand, and would love to have a chat if you find yourself in the vicinity.

 

Queensland – Angus Creedon
Here in Queensland, it’s starting to cool down and late autumn storms are helping with the winter crop establishment. Plenty of oats and grazing winter crops are being planted on great moisture profiles. Once most of the grass from summer has either frosted off or stopped growing, graziers with forage crops will purchase cattle and we’ll begin to see weaners hit the Queensland market over the next three months.In general, livestock prices have remained firm. Feeder prices haven’t changed for the past four weeks and processor prices have also stayed the same in a bid to level/lower the store price to be more economical.

Overall, things are looking great except that the first few frosts of the season will see a decline in protein and energy levels in the grass, meaning producers will need to decide if their current grass levels are enough to take them through to the end of the year.

 

NSW – Toby Hammond
Although NSW experienced substantial rainfall in early March, only the odd isolated shower has been reported since then. Most central and southern regions have by now experienced intermittent frosts, with residents in some places waking up to consecutive light frosts for an entire week or more. Daytime temperatures have also dropped back to tops of 22 degrees (textbook for autumn), which contributes to the general sense that we’re experiencing much more normal weather patterns than in previous years. Despite the lack of rain recently, farmers have reported that sub-soil moisture levels are still adequate and that the grass is benefiting. Many experts have declared that we’ve now reached the top of the market, which indicates that – without any rain on the horizon – the restocker market could soften.

Compared with this time last year, there’s still a distinct price difference across most categories of livestock where values are considered high. There was such strong confidence in the season during the same period in 2020 that the market was gaining momentum each week. At the moment, it’s a different scenario – prices remain strong but stagnant. Store lambs are still bringing $170/hd and well-bred young cattle under 300kg are still attracting prices upwards of $6/kg lwt. Some lamb processors have released forward prices in the early-to-mid $8 mark, and it will be interesting to see what sort of uptake they have on these contracts.

 

Victoria – Michael Phelan
The Victorian situation is very similar to this time last month. There was no significant rainfall in the western half of the state, and regions that did receive small amounts of rain over the past month (mostly central and eastern Victoria) are looking for follow-up rain to kick on a good early strike of pastures.For breeders in areas where there hasn’t been sufficient rainfall, lambs are hitting the ground onto less than ideal paddocks. Heavy supplementary feeding isn’t ideal because it draws less-attentive mothers away from their lamb to feed, and there’s no substitute for a green pick.

In previous seasons, many have pushed lambing into May or even June to ensure there’s green feed on the ground. This isn’t devoid of risks, as it can lead to lambing-down in cold, wet and windy conditions. Autumn breaks on average come two weeks either side of Anzac day, so there is still time but earlier breaks can save graziers a lot of money at this time of year.A flurry of feedlot lambs have entered the livestock market just as many mixed farmers turn their attention to getting their crops in the ground, causing prices to ease. Forward contracts for processors are now out for May and June and show a slight uptick, and the commitment processors get at their contract offerings will impact where spot market prices go between now and the end of June. Cattle prices remain strong, although there are signs things are hitting the rev limiter. Many are choosing to sit out of the market for the moment – particularly when buying weaner cattle – but persistent rain in NSW and Queensland will help keep the Australian fundamentals strong for a while yet and opportunities are still there for buyers.

Finally, I attended the “Beef It Up” expo at Corryong last week, where independent livestock analyst Simon Quilty spoke about world fundamentals for beef and lamb. Signs are looking good in terms of demand for both products. This is largely due to the fact that the US in particular is vaccinating its population at break-neck speed, which is restoring confidence in food outlets. It even looks as though the cruise ship sector may bounce back in time.

 

Regional Round-Up

Posted on by Caitlin Dearden

Welcome to the second instalment of our regional round-up – StockCo’s monthly chance for you to find out exactly what’s going on in the livestock industry across Australia.

National overview – Chris Howie
South and Western Australia have remained relatively dry through the agricultural areas and are awaiting the preferred April break to start sowing. Many who had expected a wet summer had sown dry grazing crops in the hope of lambing or calving onto green feed in those states. Supplementary feeding is well underway for both lambing and calving. Livestock targeted at winter sale periods are doing well on pasture that’s benefited by recent rains or supplementary feed programs, with anticipation of price-for-weight reward. At present, both SA and WA are in normal seasonal patterns, and have not received the rainfall of the centre and east coast. Cattle prices remain at record levels, with joined females still providing the best opportunities considering recent rains. Sheep and lambs are entering a seasonal period of price volatility, with many waiting to see what the supply position will be over the next four months before committing. Normally this period will see mutton and lamb prices gradually strengthen, until the new season supply appears. The Queensland and NSW rains have filled in many dry areas and had an immediate impact on the supply of store and prime cattle. This, in turn, will see a continuation of the strong cattle prices through the winter.COVID is still an inhibiting factor on the industry calendar, but many events have resumed, with the recent NTCA event in the NT, the upcoming Royal Show series and Beef 21 in Rockhampton. Many state-based industry days and events are planned, and it’s well worth searching those event calendars so you don’t miss out.

 

Queensland – Angus Creedon
Queensland in general has received great rain in March, so the cattle market’s still very strong and will continue to increase over the next month or so. In the next six weeks there’ll be a lot of oat crops ready to be grazed in southern Queensland and northern New South Wales, so that will encourage the price of cattle to stay where it is, if not improve. With large areas of Queensland having had such good rain, they’ll be able to hold on to the cattle they’ve got and the processor supply will be very tight – they’ll be relying on the feedlot market for a constant supply of cattle. Some of the biggest processors, including JBS, are shutting down for a couple of weeks and directing cattle to their other plants.In general, everything’s looking very good going into winter – there are still some dry areas in north west Queensland, but overall it’s not too bad and, despite not seeing much of an increase in numbers of animals, the prices have gone up.

 

NSW – Toby Hammond
Most parts of eastern New South Wales have received substantial rainfall, which has set virtually everyone up for a pretty reliable autumn. This, in turn, has sparked a lot of buying activity and created huge potential for female trades. Grazing crops are looking very good and the outlook is positive for future feeds. Prices of live weaner cattle – 200-300kg heifers – are very strong, though there’s not a lot of forward pricing from feedlots or processors. When it comes to the lamb market, that’s now softened a little – however, there are forward prices out there and that’s made store lamb prices stronger. Finally, western New South Wales has missed out on rain and it’s starting to cool off, so further down the track there could be opportunities for purchases out of these areas.

 

Victoria – Michael Phelan
In western Victoria in March and April the supplementary feeding ramps up, and right now it’s at its peak whilst we wait for the break in seasons. Having not had any rain come down from New South Wales it’s quite dry over this side of the state, but on the eastern side patchy showers that have led to enough rain to get a germination – It’s an anxious wait to see if it’s a true break in the dry.Where graziers have got rain, or there’s confidence they’ll get it, there’s been interest in ewes. A lot of farmers over here are broadacre croppers, and they’re currently preparing their paddocks and burning stubble. A lot of croppers with lambs in containment are now looking to offload them, so there’ll be an influx of lambs available over April and May. Graziers who aren’t on a pipeline of water get a bit anxious at this time as it’s not much fun having ewes lambing into dusty paddocks, so after three weeks or so the west will really be looking to see if those rains come.

 

Regional Round-Up

Posted on by Caitlin Dearden

Welcome to the very first instalment of our regional round-up – StockCo’s monthly chance for you to find out exactly what’s going on in the livestock industry across Australia.

National overview – Chris Howie
Victoria and New South Wales are currently in a great feed position – if another rain rolls through they’ll have a green summer. Queensland, on the other hand, could do with more rain in parts, and South Australia and Western Australia have seen rain ruin a lot of dry feed. This means they’ll be looking at feeding earlier than usual. Overall the national outlook is very positive compared to this time last year, when lots of areas were still enduring three years of drought.Due to limited supply, cattle pricing is currently at an all-time record high, with sheep and lamb holding at about normal levels and predicted to move upwards in the next six weeks. We’re seeing an increase in producers realising how much equity is tied up in their livestock – they can use that money to pay their debt down or manage new projects within their business. This is a great opportunity for producers – and in general, it’s an optimistic time for the industry.

 

Queensland – Angus Creedon
The predicted La Nina deluge is resulting in a real mix of conditions across Queensland right now, and on the whole the state is quite dry.  Queensland does tend to get rain into March and April, however, so we’re still hopeful for more.Right now, some areas are receiving great rains and are buying stock, whereas others are seeing patchier results and having to sell.New South Wales is taking stock into that part of the world – and that demand means cattle prices are still great, as currently the national herd is still the lowest it’s been since the 60s.Finally, we’re really looking forward to Beef Week 2021 in Rockhampton in May – it’s going to be a great chance to catch up with customers and friends across the industry.

 

NSW – Toby Hammond
Right now in NSW the weather conditions are very favourable, with lots of rainfall in late January and early February, and farmers are now hoping for rain in March to set them up for a really good autumn. Cattle and lamb prices are both holding strong, so those with grass and livestock are in a good position.Currently producers are planting their winter grazing crops – meaning there’s potential for trade further down the track, when the crops are established. Overall it’s a really positive time for producers in New South Wales, and we’re very optimistic about the coming months.

 

Victoria – Michael Phelan
Here in Victoria, there’s a lot of supplementary feeding going on – the summer rainfall has been a mixed bag but generally good, and overall it’s been a mild summer in which some areas have been able to ease up on giving stock extra feed. This bodes well for the sowing of crops in April.As most Victorian producers move out of drought we’re going well, with a particular boom across the east coast. The pricing of the cattle market is red-hot – it’s a great time for sellers as weaner sales are at record levels, but excess feed means people are buying and putting stock out to paddock, which makes it a jittery time as they hold on to stock. Overall, though, the fundamentals are good, with rain up north helping to boost low stock numbers.

Right now there’s a great demand for lamb – the market’s not flooded and prices are at good levels, and there’s money to be made if stock’s managed right. There are big opportunities at the moment to buy pregnant ewes for lambing down in autumn, as well as PTIC heifers, and in general it’s a positive time here in Victoria.